Sportech PLC Sportech PLC - Board Changes & Strategic Review (9663Q)
September 18 2017 - 2:01AM
UK Regulatory
TIDMSPO
RNS Number : 9663Q
Sportech PLC
18 September 2017
Sportech PLC - Board Changes & Strategic Review:
18 September 2017
Sportech PLC ("the Company") announces that it is undertaking a
comprehensive review of the business and the capital structure,
with all options to optimise value for the benefit of shareholders
under consideration.
Ian Penrose, CEO and Mickey Kalifa, CFO have informed the Board
of their intention to resign from their current roles. Ian will
remain with Sportech until 31 December 2017. Mickey's resignation
from the Board is effective as of today but he will remain with the
company until 31 October 2017. Ian and Mickey will assist in an
orderly transition in the coming months. Richard Cooper, currently
Chair of the Audit Committee, will assume oversight of the finance
function.
This follows a successful turnaround in the business under their
leadership, in which the Company secured GBP97m gross receipt from
its VAT litigation case, modernised and sold the Football Pools,
repaid GBP65m of debt and returned GBP21m to shareholders with an
anticipated substantial distribution to follow from the Group's
GBP64m net current assets as at 30 June 2017.
The Company will provide an update on the strategic review and
the future management structure with the Group's trading update on
November 9, 2017.
Richard McGuire, non-executive Chairman of Sportech, commented:
"We would like to thank Ian for the tremendous job he has performed
at Sportech. He presided over the transformation of the Company
from a UK focused business into a respected, fully licensed and
regulated global gaming technology supplier and gambling operator
in the US with a strong balance sheet".
"Mickey led a remarkable transformation in the company's
financial strength as CFO and previously when Corporate Development
Director, in prominently driving Sportech's
global expansion. On behalf of the Board, I would like to thank
him for his work over many years and wish him continued success in
the future".
"As Chairman, I will be leading the strategic review process to
ensure that the best path forward is delivered for
shareholders".
Ian Penrose commented: "I have enjoyed my time at Sportech in
which the company has enjoyed a transformational period from a
rapidly, and many thought terminally, declining UK business with
debts exceeding GBP112m and 5x leverage, into the business it is
today. We stated two years ago, when the share price was 65p and we
had GBP65m of debt that we would deliver growth in shareholder
value. I am therefore delighted that we have delivered a GBP150m
net turnaround in the financial position of the Group. This
includes the return of GBP21m to shareholders, the elimination of
the debt and the current substantial cash, resulting in a share
price that has increased by around 50% over these two years. In
addition, Sportech has a great North American based business with
both organic and strong regulatory growth opportunities."
Mickey Kalifa, said: "I have been with Sportech for eight years
and have thoroughly enjoyed my time at the company and driving the
Group's successful financial turnaround. However, I believe it is
time to move to the next stage of my career. I am very confident
that Sportech will continue to deliver value for shareholders and
customers alike."
For further information, please contact:
Sportech PLC Tel: +44 (0)20 7268 2400
Richard McGuire, Chairman
Ian Penrose, Chief Executive
Brunswick Group LLP Tel: +44 (0)20 7404 5959
(Financial PR adviser to Sportech) sportech@brunswickgroup.com
Jonathan Glass, Stuart Donnelly
This information is provided by RNS
The company news service from the London Stock Exchange
END
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